Yukon MP Ryan Leef says he was surprised to hear about Jim Flaherty's sudden resignation from cabinet Tuesday.

Meanwhile, Premier Darrell Pasloski, also the Yukon's minister of Finance, refused to comment on Flaherty's resignation.

Flaherty served as Finance minister since 2006, when he was first elected to represent the riding of Whitby-Oshawa in Ontario.

"I certainly didn't, and I don't think many of my colleagues really saw that happening,” Leef told the Star this morning. He was informed of the resignation by a note from the Prime Minister's Office.

"I think most people were seeing some of the health challenges he was having and the very busy workload he was keeping, but he's articulated that his health had nothing to do with his decision,” Leef said. He was referring to Flaherty's struggles with a serious dermatological condition.

In a statement, Flaherty said he is "on the road to full recovery,” and his health did not impact his decision.

"This decision was made because it is the right one for me and my family at this time,” the former minister said.

"Obviously, we wish him all the best with that, but it's certainly one of those team members for us that is a challenge to lose,” Leef said.

But the backbench MP isn't worried that Flaherty's departure will impact support for the Conservative government, especially considering Prime Minister Stephen Harper's appointment of Joe Oliver to the Finance portfolio.

Oliver, who served previously as the minister of Natural Resources Canada, was elected in 2011.

Before entering federal politics, he was an investment banker at Merrill Lynch, served as the president and chief executive officer of the Investment Dealers Association of Canada, and the executive director of the Ontario Securities Commission. He holds a Masters of Business Administration from Harvard.

"Minister Oliver certainly has a tremendous track record in finance,” Leef commented.

"I don't think we're going to see any dynamic shift in our financial management plans or spending priorities for Canada.

"I think minister Oliver will just sort of take over where minister Flaherty left off. I'm quite confident that minister Oliver was the right choice for that,” Leef said.

Oliver is one of two MP's he thought were top contenders for the job, he added.

Leef said he thought Shelly Glover, the minister for Canadian Heritage, might have also been considered, given her past experience as the parliamentary secretary for Finance.

Flaherty's decision to pursue lucrative private sector opportunities forced a small cabinet shuffle extending behind Oliver.

It saw Greg Rickford move from minister of state for Science and Technology to the Natural Resource file, and backbench MP Ed Holder promoted to minister of state for Science and Technology.

Holder was elected the MP for the Ontario riding London West in 2008 and again in 2011.

Leef said he was "excited” to see Holder move forward.

"On that junior portfolio, I think we will see some exciting things happen because Ed is a very dynamic person,” said the Yukon MP.

"He's really, really engaged, he's highly active in all the things that he's done,” he said.

"Sometimes change is hard, particularly when it's labelled as a shocker like with minister Flaherty leaving,” said Leef.

But "change can be refreshing and renewing, and to see Ed Holder move into cabinet I think is great,” he added.

Flaherty announced his resignation only a few days after his most recent open questioning of the government's plans to move forward on income-splitting tax measures.

Following an event last month in Ottawa, Flaherty told reporters: "It's an interesting idea. I'm just one voice. It benefits some parts of the Canadian population a lot. And other parts of the Canadian population virtually not at all.”

During the 2011 election, the Conservatives committed to implement an income-splitting tax benefit for families with children under 18.

A study from the same year by the C.D. Howe Institute found the tax measure would significantly benefit wealthier families with only one earner and transfer a heavier tax burden to two-earner families with the same income.

Leef said he's generally supportive of "sound tax measures we can afford.

"I'm also supportive of sticking to commitments that we've made,” he said.

"We campaigned on it and my belief is we should stick to it, barring some sort of real catastrophic issue where it just is not financially feasible and would thrust the country irresponsibly into a position it can't quite afford,” he added.

In response to concerns raised by Flaherty and others, Leef said "it does benefit a number of families beyond the wealthy only.

"In the North, where daycare costs are high and a lot of people rightfully want to stay at home and raise their children, and we do have some higher wages here in the territory, it doesn't necessarily equate to rich people. It just certainly does equate to some higher wages and tax brackets where being able to split that amongst family members would be beneficial,” he said.

Leef added that the income-splitting tax benefit can't be examined in isolation, noting there are plenty of measures that only benefit specific groups.

"What we need to do is just make sure the balance of all the tax measures we're putting in place, across from A to Z are benefiting the largest range of Canadians and that nobody is excluded,” he said.

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